Magnetite Mines Ltd (ASX:MGT) has signed a non-binding memorandum of understanding (MoU) with Pacific Partnerships, a subsidiary of CIMIC Group, to support the development, and potentially the financing of the Razorback Iron Ore Project, and to establish a foundation for early contractor involvement.
The MoU provides a framework for Magnetite and Pacific Partnerships to explore opportunities to develop Magnetite’s large-scale, long-life Razorback Iron Ore Project in South Australia’s Braemar Iron Ore Province.
It also establishes a foundation for early contractor involvement (ECI) at the appropriate time in the project’s development sequence, ie, the current value engineering phase.
Additionally, the MoU allows for collaboration between the parties on other possible commercial outcomes, including the potential for debt or equity-based project financing, joint venture partnering, procurement of equipment and other services.
The company says the MoU contemplates a consortium-based approach to the development of green iron hubs in the Upper Spencer Gulf in line with emerging South Australian government strategy.
Magnetite CEO Tim Dobson said: "We are thrilled to explore a partnering relationship with Pacific Partnerships. Our Razorback Iron Ore Project will be a very large, long-term venture and needs a corresponding partnering approach to support development and financing.
“This collaboration reflects our commitment to deliver a world-class project and we look forward to working closely with Pacific Partnerships and unlock the full potential of Razorback for the benefit of all shareholders."
About the project
Magnetite Mines has a 100%-owned mineral resource package of 6 billion tonnes of iron ore, including 2 billion tonnes in probable ore reserves.
The company is developing the Razorback Iron Ore Project, 240 kilometres north of Adelaide, to meet accelerating market demand for premium iron ore products created by iron & steel sector decarbonisation, with the potential to produce high-value Direct Reduction (DR) grade concentrates.